Cultural embeddedness has a strong impact on innovation propensity of clustered firms.The clustered firms who are embedded in individualism and masculine are more likely to be involved in radical innovation, while those are embedded in power distance and uncertainty avoidance are more likely to be involved in incremental innovation.Strategic intent is directly related to innovation propensity of clustered firms, which means the stronger the clustered firm's strategic intent is, the more likely to be involved in radical innovation, and vice versa.Besides, strategic intent is influenced by cultural embeddedness.Deeply embedded in individualism and masculine contributes to strong strategic intent, while deeply embedded in power distance and uncertainty avoidance results in weak strategic intent.The empirical research shows strategic intent plays partial mediation role between cultural embeddedness and innovation propensity of clustered firms.